The underdog Aussie property market bucking the price slump

• Australia’s property price slump is entering its seventh-straight month, but the slowdown is not universal in every market.
• Regional properties, while beginning to show marginal declines, have proved remarkably resilient compared to big city properties.
• Lower barriers to entry have insulated regional property prices from the effects of four interest rate rises in 2026.

Australia’s property scene is awash with grim news: falling house prices, lagging auction numbers, and mortgage defaults are driving much of the market’s contraction.

But far from the country’s waterside blue-chip mansions, another story is unfolding: an underdog market with affordable prices and busy auctions.

The only issue is — you’ll have to travel.

The latest data from property research firm Cotality shows that in the three months of the September quarter, capital city dwelling values fell an eye-watering 4.3 per cent.

Out in the regions, the decline for the same period was a relatively marginal 1.9 per cent.

Cotality Research Director Tim Lawless says better prices out in the regions mean buyers are better insulated from the month-to-month rollercoaster of the Reserve Bank and interest rates.

“Property values are typically lower across regional Australia, which gives buyers more options within their budgets,” Lawless said.

“That doesn’t make regional markets immune to higher interest rates, but it helps explain why sales activity and values have held up better than in the capitals.”

When you stretch the data out over 12 months, the story becomes even better for the regions.

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In the 12 months to September, regional property prices climbed 5.6 per cent, while capital city values fell 1.8 per cent.

Lawless said buyers were hesitant to commit in many markets when the future of variable rates was so unclear.

“The bigger issue is that buyers are finding it harder to commit. Higher interest rates have reduced borrowing capacity, household budgets are under pressure, and confidence is weak,” he said.

“Even people who are in a position to buy may be reluctant to make a decision while values are falling.

“Spring normally brings more activity, but we’re seeing fewer new listings and a growing number of properties sitting on the market. That’s not an encouraging combination for sellers.”

Property price tracker PropTrack has been recording values across several market segments, finding that “rest of state” properties (those outside major capitals) were the only markets not to record a fall.

The median value for all regional areas combined sits at $718,000 (compared to the city’s $973,000), with “rest of Qld” remaining the most expensive market at $821,000.

The regional Aussie town where couples are paid to buy and live

More affordable prices and a slower lifestyle sound like incentive enough to move to the regions, but one tiny Aussie town is taking things a step further.

Quilpie, approximately 950 kilometres west of Brisbane, boasts a population of just 530 people.

There, the council is offering Australians a one-off grant of up to $20,000 to move in and build a new home, if you are willing to stay for at least 12 months.

“Quilpie Shire Council recognises that as a result of COVID-19 there are opportunities for people to relocate to areas outside the east coast and particularly into less densely populated areas,” council papers reveal.

“Council has resolved to offer financial incentives to increase the likelihood of persons relocating to the area and establishing new residential dwellings.”

At the time of publishing, The Money Edition found plots of land in Quilpie for as cheap as $20,000, with established houses starting from $125,000.